This follows the announcement that Tyco International will acquire Broadview Security in a deal worth US$1.9 billion.
“In a move that combines the top two suppliers of residential alarm monitoring services in North America, Tyco International plans to integrate Broadview Security with its security systems integration and alarm monitoring business ADT,” said market analyst Niall Jenkins.
IMS Research also estimates that ADT will command a market share more than ten times the size of its nearest competitor in the North American market.
From the customers’ point of view, the residential alarm monitoring market will remain fairly fragmented despite this acquisition, IMS says.
“There are thousands of independent alarm dealers in North America using third party central stations to monitor their customers. When these independent dealers are included in the analysis, ADT and Broadview Security account for only around 30 per cent of the residential alarm monitoring market.
“Their market share is further reduced if the commercial alarm monitoring market is also considered.”
Niall Jenkins, research analyst at IMS Research, said: “Despite the economic situation, the US alarm monitoring market has continued to perform reasonably well with low single digit growth in 2009. The market offers long term growth potential and we expect more acquisitions to follow in the coming years.”
In related news, it has been reported that Protection One is exploring its strategic alternatives, including a potential sale of the company. While the potential for further consolidation remains, the high number of independent dealers active in the alarm monitoring market will make it difficult for mergers and acquisitions to consolidate the market significantly, IMS believes.
IMS Research is currently working on an update to the “North American Market for Remote Monitoring Services”. This report will cover the alarm monitoring, remote video monitoring and PERS (Personal Emergency Response Systems) markets in North America. The report will also cover South and Central America.
